Long Lake Project, Canada - U

RNS Number : 0687O

Sunrise Resources Plc

23 June 2010

 



www.sunriseresourcesplc.com                      

23 June 2010

PROJECT UPDATE

LONG LAKE GOLD PROJECT, SUDBURY, CANADA

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Sunrise Resources plc ("Sunrise" or "the Company") is pleased to announce that it has acquired additional exploration data for its recently acquired Long Lake gold project in Canada and completed an initial field evaluation of selected targets for Copper-Nickel-Platinum Group Metal (Ni-Cu-PGM) mineralisation.

The privately held data relates to gold exploration carried out by Dupont Exploration in 1981-82 and Pronto Exploration during 1987-88 before the land became open to staking. It includes the detailed results of mapping, sampling and drilling around the site of the abandoned Long Lake gold mine and in an unworked area 350m south of the mine drilling results where highlights of the drilling include gold mineralised intersections of 5.7m grading 30g/t gold in 1973 with follow up results of 4.1m grading 12g/t gold in 1987.  The newly acquired data will be incorporated into the drill planning programme currently underway.

The consideration for the acquisition was a cash payment of Canadian $2,000 and the issue of 600,000 three year share warrants each exercisable at a price of 0.75p per share.

Separately, the Company has commenced field evaluation of a number of high priority targets for Copper-Nickel-PGM within the claim block - including Anomaly 19, an untested high-priority electromagnetic anomaly identified during a 2008 airborne survey. Electromagnetic anomalies are targeted for conductive metal sulphide mineralisation.

The field evaluation of Anomaly 19 was carried out by Andy Bite a published expert in Sudbury geology who was formerly a senior geologist for Inco in Sudbury. The anomaly is reported by Mr Bite to be located in a classical Sudbury Breccia - quartz diorite metamorphic complex similar to that containing the Frood-Stobie and Vermillion Mines, as well as Quadra-FNX's recently discovered Segway footwall occurrence. The Frood-Stobie deposit is considered one of the largest in Sudbury, containing over 500 million tons of copper-nickel-PGM mineralization. Follow up exploration is planned.

Commenting today, the Chairman of Sunrise, Patrick Cheetham said "The new data will certainly help focus our summer drill programmes at the Long Lake gold mine and we are pleased to see an early and independent validation of the Ni-Cu potential of the claims particularly Anomaly 19 where further exploration is planned."

For further information see below, or contact:

Patrick Cheetham, Sunrise Resources plc. Tel:  [phone]. Mobile: [phone]

Gavin Burnell or Antony Legge, Astaire Securities plc. Tel: [phone]

The information in this release has been compiled and reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the AIM Note for Mining and Oil & Gas Companies dated June 2009.   Mr Cheetham is a Member of the Institute of Materials, Minerals & Mining and also a member of the Australasian Institute of Mining & Metallurgy.

Background Information:

Since 1883 the Sudbury mining field has accounted for over 25% of the world's total nickel production and new discoveries continue to be made. It is the most productive nickel-mining field in the world with over 1.7 billion tonnes of past production, reserves and resources.  Nickel-copper-and platinum group metals ("PGM") bearing sulphide minerals occur in and around a 60 km by 27 km elliptical igneous body called the Sudbury Igneous Complex ("SIC"). 

The Company holds a three year option, effective 5 May 2010 to acquire a group of mineral claims located to the south-west of Sudbury in the mineralised southern footwall of the SIC. In its claim area the SIC footwall rocks are host to a gold deposit formerly worked as the Long Lake Gold Mine. This produced 57,000 ounces of gold from over 200,000 tonnes of ore mined in the periods 1910-1916 and 1932-1939 from a 50m diameter open glory-hole developed on a plunging pipe-like zone of disseminated gold and strongly sulphide mineralised sedimentary rock down to a depth of just 55m from surface.  

The claims also include potential 10km extension to producing Copper Cliff offset dyke system prospective for nickel-copper-platinum group metals, where, north of the Company's Property, the producing Copper Cliffs South mine and the Copper Cliff North mine have yielded over 200 million tonnes of ore and Vale Inco Limited's Clarabelle Mill, Copper Cliff Smelter and Copper Cliff Nickel Refinery are located in close proximity.

Offset Dykes have become the target of progressively more intense exploration interest in recent years following a number of new discoveries. The latest such discovery on the Copper Cliff Offset dyke was made in 2004 at Kelly Lake, to  the south of the existing mines (in the direction of the Company's Long Lake property), where a resource of over 20 Mt at a grade of 3.5% combined nickel and copper and 5 g/t PGM has been reported.

The Company may acquire a 100% interest in the Property by making staged payments totalling Can $575,000 over a three year period, by meeting exploration expenditures of Can $500,000 in that period and by issuing up to 5,000,000 five year share warrants exercisable at 0.675p per share. The vendor retains a 3% NSR on the property of which 2% may be purchased by the Company at any time for the sum of Can$3 million.

 

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